Project Report For Rural godown industry
Project report for Rural godown industry is as follows.
A godown is a holding area that is used to store items. Warehouses are generally used in e-commerce to hold goods in stock so that the fast shipping periods needed can be reached. Agriculture, the cornerstone of the Indian economy, contributes to the country’s overall economic development and influences the standard of living for more than half of the population. With 179.9 million hectares under cultivation, India is the world’s second-largest agricultural region. In the global scenario, the country has emerged as a major player in agriculture.
In 2020, the Indian Godown/warehouse sector will be worth INR 676 billion. Warehousing is the process of storing materials and merchandise in order to preserve the quality and quantity of items that can be used in the future. It acts as a node in the logistics value chain, allowing for the aggregation, sorting, and delivery of goods across the supply chain. The Indian rural godown/warehousing industry is forecast to expand at a Compound Annual Growth Rate of 9.10 per cent between 2021 and 2026, according to IMARC Group. Several causes, including the country’s growing tax structure, expansion in key sectors such as autos, food, agriculture, pharmaceuticals, FMCG, and the introduction of organised retail, have encouraged the rise of the warehousing business in India, particularly in rural India. Rural godown areas of organised players in major cities increased by 77% year on year in 2017, reaching 46.2 million square feet in 2018. The 3PL, e-Commerce, Fast Moving Consumer Durable (FMCD), Fast Moving Consumer Good (FMCG), Automotive, and Retail industries are the primary users of centralised warehouse spaces in the nation. The 3PL and e-Commerce players were the most active users of structured storage rooms in 2018.
Market potential & Strategy
The Indian rural godown market is highly fragmented, with many unorganised companies competing. Unorganized players, who operate small-scale warehouses with little to no mechanisation, hold around 90% of the storage space in the rural region.
The expansion of foreign trade is also fueling the growth of India’s rural godown sector. The admission of many foreign and domestic enterprises, as well as the growth of manufacturing plants, has increased export potential, fueling demand for warehouse space across the country. In comparison to the rest of the globe, India has the least amount of storage space for modern facilities, especially in rural regions. Furthermore, inadequate road infrastructure, restricted accessibility, inability to accommodate high traffic density, and insufficient air and seaport capacity all contribute to the country’s logistics sector’s increased cost per transaction. transaction. With the right planning and proper execution, first mover’s advantage can be gained with adequate investments in the infrastructure required for a flourishing godown industry in the rural parts of the country
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